It should be preeminently clear that my overall trend remains bearish after I noticed the hidden bearish divergence that defined this most recent top as we slammed into resistance (drawn on the log chart, otherwise you would think it is a breakout). We went down quite a bit and now it seems we have found a solid chance of capitalizing on a bounce.
I want to make it clear that my overall bias is still bearish. My bias will not change from bearish until we get a peak over our local high of 8.5K without bearish divergence killing the uptrend. If we hit overhead resistance with hidden bearish divergence I will also remain bearish.
Having said that, we see a great opportunity to play this bounce as the price action develops. On the six hour we see we have established a strong floor between $7-7.1K. The RSI is clearly bouncing out of oversold conditions, the MACD is converging for a bullish cross and the Hull MACD has had higher low and is about to cross bullishly.
Not financial advice, so forth and so on, but this seem to have a great risk to reward ratio depending on how tight your stop.
I want to make it clear that my overall bias is still bearish. My bias will not change from bearish until we get a peak over our local high of 8.5K without bearish divergence killing the uptrend. If we hit overhead resistance with hidden bearish divergence I will also remain bearish.
Having said that, we see a great opportunity to play this bounce as the price action develops. On the six hour we see we have established a strong floor between $7-7.1K. The RSI is clearly bouncing out of oversold conditions, the MACD is converging for a bullish cross and the Hull MACD has had higher low and is about to cross bullishly.
Not financial advice, so forth and so on, but this seem to have a great risk to reward ratio depending on how tight your stop.
Order cancelled:
The viability of this trade has been seriously put at risk. I mentioned the reward risk being depending on a tight stop and it seems things have gotten grizzly. Volume picked up on this red candle, not a good sign.
Everything I wrote about in the OP suggested we would swing up but the CM_Ulimate just turned red on the daily, and that is a powerful bearish signal. This is basically a no trade zone except for those with a ravenous risk appetite.
And I promise every Floridian that you will all be rich... because we're gonna print some more money! Why didn't anybody ever think of this before?
~Nathan Explosion
~Nathan Explosion
